The controversial Tralee housing development south of Canberra is another step closer to becoming a reality.

The Queanbeyan City Council has given its final approval for the project and will now ask the New South Wales Government to rezone the land.

The Canberra Airport has been fighting the project, saying homes will be exposed to unacceptable aircraft noise because they will be too close to flight paths.

Queanbeyan Mayor Tim Overall says Tralee is part of a plan to create 10,000 dwellings for the region and is crucial to the local economy.

"The important thing here is that south Tralee along with Googong, are really two major new developments which will allow for the construction of new greenfield developments in Queanbeyan," he said.

"Both these areas are critical to the implementation of our residential and economic strategy."

Mr Overall says the council unanimously supported the plan.

"After eight and a half years now this is the final step for council, which council has now taken the final step in the draft rezoning process. It is now in the hands of the NSW Department of Planning," he said.

But the Greens say Queanbeyan council has made the wrong decision.

Katrina Willis from the Queanbeyan-Monaro Greens says the concerns of residents are coming second to the council's plans.

"The council's conceded that the aircraft noise is significant enough to warrant warning people before they purchase land and housing there but yet it's still prepared to expose people to those levels of noise," she said.

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